Workday demonstrated robust growth and momentum in Q2, with significant achievements in AI integration, market expansion, and strategic acquisitions. However, challenges in specific segments like state and local government and higher education pose potential headwinds.

Company Guidance

During the Workday Second Quarter Fiscal Year 2026 earnings call, the company provided updated guidance, reflecting its strong performance and strategic initiatives. Subscription revenue increased by 14% to $2.169 billion, while total revenue grew 13% to $2.348 billion. The company reported a non-GAAP operating margin of 29% and operating cash flow of $616 million, with a growth of 8%. Workday increased its FY 2026 subscription revenue guidance to $8.815 billion, also up by 14%, and projected a non-GAAP operating margin of 29% for the fiscal year. The company anticipates Q3 subscription revenue of approximately $2.235 billion, maintaining a 14% growth rate. Additionally, Workday expects FY 2026 professional services revenue of approximately $700 million and capital expenditures of $200 million. The firm highlighted its ongoing investments in AI talent, new markets such as India, and specific industries, including the federal sector, as key drivers for long-term growth.

Strong Revenue Growth

Workday reported a 14% increase in subscription revenue, totaling $2.169 billion for the second quarter, with total revenue reaching $2.348 billion, up 13% from the previous year.

Significant AI Integration

More than 75% of net new deals included one or more AI products, contributing to a year-over-year doubling of net new ACV from AI products.

Expansion in Key Markets

Workday saw strong performance in international markets, particularly in EMEA, with significant wins in the UK and Germany, as well as in APAC with new deals in Japan and Vietnam.

Launch of Workday Government

The introduction of Workday Government, a subsidiary dedicated to serving the US government, positions Workday for growth in federal sectors, leveraging AI for infrastructure modernization.

Acquisition of Paradox

Workday announced the acquisition of Paradox, an AI-driven recruiting platform, enhancing its talent acquisition suite and offering new capabilities for hiring processes.

Expansion of Partner Ecosystem

Greater than 20% of net new ACV was sourced from partners, with strategic partnerships expanding Workday's capabilities and market reach.

Workday (WDAY) Earnings, Revenues Date & History

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WDAY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Dec 02, 2025	2026 (Q3)	2.16 / -	1.89	―	―	―
Aug 20, 2025	2026 (Q2)	2.12 / 2.21	1.75	26.29% (+0.46)
May 22, 2025	2026 (Q1)	2.01 / 2.23	1.74	28.16% (+0.49)
Feb 25, 2025	2025 (Q4)	1.78 / 1.92	1.57	22.29% (+0.35)
Nov 26, 2024	2025 (Q3)	1.78 / 1.89	1.53	23.53% (+0.36)
Aug 22, 2024	2025 (Q2)	1.65 / 1.75	1.43	22.38% (+0.32)
May 23, 2024	2025 (Q1)	1.60 / 1.74	1.31	32.82% (+0.43)
Feb 26, 2024	2024 (Q4)	1.47 / 1.57	0.99	58.59% (+0.58)
Nov 28, 2023	2024 (Q3)	1.41 / 1.53	0.99	54.55% (+0.54)
Aug 24, 2023	2024 (Q2)	1.26 / 1.43	0.83	72.29% (+0.60)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

WDAY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 20, 2025	$227.49	$227.58	+0.04%
May 22, 2025	$272.07	$238.01	-12.52%
Feb 25, 2025	$255.22	$271.09	+6.22%
Nov 26, 2024	$270.19	$253.40	-6.21%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.